The author is a Forbes contributor. The opinions expressed are those of the writer.

Loading ...

Loading ...

This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe

Image via Wikipedia

The Godfather of Soul died on Christmas Day, 2006. His estate has been marred by fighting ever since. Here's our Forbes recap of the legal troubles which have left James Brown's estate and wishes in limbo.

The Associated Press reported yesterday that the court battles devastated his estate so much that his charitable trust had dwindled in value all the way down to $14,000, with $20 million of debt, until a 2009 settlement. This was quite a drop, because original estimates of the value of Brown's estate came in at the $100 million mark.

The settlement -- which was supposed to end all of the fighting -- called for about half of Brown's assets to pass to a charitable trust, with one-quarter going to his widow and the rest passing to all of his children. The deal also led to the court appointment of a new attorney to administer the estate, Russell Bauknight.

When Bauknight became involved, he hired a professional music manager, who struck new deals for Brown's music to be used in commercials throughout the world for products like Chanel and Gatorade. According to Bauknight's attorney, because of his efforts, Brown's estate has almost finished repaying the large debts and is ready to -- finally -- start passing money onto charity. He says that thousands of college scholarships for needy students will be created as early as next year.

But, the fireworks are not over for the estate of the musician known as "The Hardest-Working Man in Show Business." The lawyers are working hard too. Today, the South Carolina Supreme Court hears arguments from them to decide if the settlement should be thrown out. Two former trustees have been fighting since 2009 to undo the deal.

The former trustees, Adele Pope and Robert Buchanan, say they were ousted from control because they objected to the settlement. They feel the South Carolina Attorney General wrongly intervened to push the settlement through, without their participation. They want a much larger share of Brown's assets to benefit poor and needy children, as Brown's trust document spelled out, without so much going to family. They also want to be back in control.

Bauknight's attorney says that allowing the pair "back into power would be similar to throwing a grenade into the James Brown musical empire."

This case highlights the problems with estate battles. They tend to be expensive, emotional, and drag on and on and on. And no, they don't just happen to the estates of the rich and famous. Heirs battling for a share of trust and estate property, or over family heirlooms, joint bank accounts, life insurance, or a number of other assets, are all too common in our country, especially in this economy.

And the biggest reason why conflicts like this happen? Poor estate planning. When the documents are done the right way, before there is a question of mental competency, it's a great start. But then it's important to keep wills, revocable living trusts, and other legal documents updated, especially after life events like marriages, births and divorces.

James Brown didn't update his documents after his marriage or after the birth of his last child, James Brown II. That opened the door to the fighting, which is going on five years now. There were also claims raised by family members that he was subject to undue influence. Google+